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ARTICLE · 03 NOVEMBER 2016

What's New Or On The Horizon?

The following is a summary of new legislation and what is coming up to ensure that you remain aware of developments that could impact your business going forward.

United KingdomEmployment and HR

The following is a summary of new legislation and what is coming up to ensure that you remain aware of developments that could impact your business going forward.

Termination payments

Currently, an employer is able to make an ex-gratia payment of up to £30,000 on termination of an employee's employment without deductions for tax or national insurance. After that, income tax applies but not NI contributions.

It was announced in August 2016 that these rules will be revised with effect from April 2018 so both tax and employer's NI will become payable above the £30,000. This will make things more expensive for employers making termination payments, although the total termination payment will still be exempt from employee's NI.

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